Advancing Sustainable Mobility in Greece: Promoting the Uptake of Electric Vehicles
Overview
The Greek transport sector is highly dependent on fossil fuels, accounting for 96% of its final energy consumption in 2021. To address this, the government has initiated several policies to promote the adoption of electric vehicles (EVs). However, the current charging infrastructure is insufficient to support widespread EV adoption.
Key Findings
- Current Market Status: As of March 2024, battery electric vehicles (BEVs) accounted for 9.6% of new car registrations in Greece, up from 2.6% in 2020. The Greek National Energy and Climate Plan aims for a 30% share of electric passenger vehicles in new registrations by 2030.
- Charging Infrastructure: Greece needs to develop more charging infrastructure to meet the EU's Alternative Fuel Infrastructure Regulation (AFIR) targets. The report highlights the importance of deploying charging points along the Trans-European Transport Network.
- Subsidy Schemes: The "I Move Electric" (IME) subsidy scheme, introduced in 2020, has been effective in accelerating EV adoption. The scheme was updated in July 2022 to increase the highest subsidy amount for passenger cars from EUR 6,000 to EUR 8,000. Despite modest government budgets, subsidies are crucial for promoting EV adoption, especially among lower-income households.
Recommendations
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Benchmarking Subsidy Schemes:
- Compare Greek subsidy schemes with best practices in the EU to ensure efficiency and effectiveness.
- Tailor subsidies to target lower-income households and avoid subsidizing expensive vehicles.
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Deploying Charging Infrastructure:
- Increase the number of publicly accessible charge points in local and regional authorities.
- Identify the most promising models for procuring charging infrastructure and address future challenges.
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Meeting AFIR Targets:
- Quantitatively analyze future EV charging demand under different scenarios to manage grid impacts and avoid charging infrastructure bottlenecks.
Key Data
- New Car Registrations: Battery electric vehicles (BEVs) accounted for 9.6% of new car registrations in Greece as of March 2024.
- Used Imports: The share of used imports of passenger cars increased from 15% in 2015 to 40% by 2022.
- IME Subsidy Scheme: Updated in July 2022 to increase the highest subsidy amount for passenger cars from EUR 6,000 to EUR 8,000.
- Government Budget: Total budget for EV subsidies (EUR 50 million for IME phase I and EUR 60 million for phase II).
By implementing these recommendations, Greece can accelerate the transition to sustainable mobility and reduce its dependence on fossil fuels.
